Processing a mortage pymnt

[MarkAndrew]

I'm curious if we are doing this right. I inherited this method from the previous treasurer. Currently when we pay our mortgage we make the following entries through a manual check because the money is automatically taken from our checking account.

Cr 1116 Checking account $1000
Dr 2XXX Mort Long Term Liability account (for the principal) $400
Dr 5xxx Interest Expense account (for the interest) $600

The reason the question came up is because we see a mortgage expense account in the sample chart of accounts and wondered what it would be used for.

[NeilZ]

This thread may give you some background on tracking the mortgage in the COA:

http://www.powerchurch.com/forum/viewto ... f=3&t=3993